The liquidity of Bitcoin (BTC) is changing, and this could mean a new dip buying opportunity for investors. hodler.
Like highlighted by the on-chain analyst Material Scientist October 12, the order books are retracing the movements of August.
Order book data reinforces the bullish outlook
Following the mid-cycle lows around $ 29,000, the month of August certainly encouraged bullish views, and then developed into a September characterized but sideways moves.
October, or “Uptober“as it is called by some traders, it has since reported bullish sentiment: the order book data proves it.
“Resistance at $ 60,000. First time since August that demand is greater than supply within 20% of the price“, comments Material Scientist.
“If we were rejected, it would present an excellent buying opportunity on the way to an all-time high.”
In other words, given the upside on BTC / USD towards $ 60,000, more sellers are asking for higher prices for BTC, around 20% of the spot price.
Like other users have highlighted, the divergences between bid and ask orders coincided with the highs and lows of local spot prices, adding further optimism on the current price action.
In a few months, the resistance “will have no relevance”
As Cointelegraph reported, meanwhile, analysts are divided on when a potential correction could happen and how low it could extend.
Related: BTC Price Returns to $ 57,000 After Five Months: 5 Things to Watch in Bitcoin This Week
With the review of the low of $ 45,000 not yet to be ruled out – despite a lack of general interest in selling – Bitcoin is keeping investors hesitant as it prepares to tackle the all-time high.
“BTC is preparing for the second part of its cycle. That said, $ BTC is at its last major resistance zone before new all-time highs“, comments the trader and analyst Rekt Capital on 12 October.
“In the short term, this area of resistance could be important. But in a few months – it won’t be anymore.”